Taxes And contract for deed

[pasofino123]

What is the name of your state (only U.S. law)? South Dakota. I bought a house on contract for deed two years ago I have not claimed it on my taxes and she has not sent anything to me to do so. I believe she has been claiming the house on her taxes. I know she did Not file the house anywhere in the state or county. She does not live in the state and she lied to her bank and said that she lived here so that she could get an equity loan on the house. She does not want her bank to know that she sold it to me because it has a pay on-demand clause. I would like to get out of my contract for deed On this house. Does she oweme anything for the taxes and or can she claim the house for her taxes?

 

[FlyingRon]

You do not need the seller to send you ANYTHING to claim an appropriate deduction. It would behoove you to have some documentation (the contract itself) if you are ever audited.

What you need to determine is what parts of the payment you are making are allowable interest or tax payments.

Note you are in a very DANGEROUS situation. You're contracted on a property subject to some other mortgage which most likely has a due-on-sale clause (though banks rarely call these while payments are being made) but if she decides to pocket your payments without remitting it to the bank, you both will LOSE big time in foreclosure, with not any of the recent liberal protections since YOU are not the borrower NOR a legitimate renter and she is not an owner-occupant.